Digimarc Crushes Earnings Estimates
Digimarc (NAS: DMRC) reported earnings April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Digimarc whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Margins improved across the board.
Digimarc reported revenue of $17.0 million. The one analyst polled by S&P Capital IQ looked for net sales of $20.0 million on the same basis. GAAP reported sales were 88% higher than the prior-year quarter's $9.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.70. The two earnings estimates compiled by S&P Capital IQ anticipated $0.55 per share. GAAP EPS of $0.70 for Q1 were 483% higher than the prior-year quarter's $0.12 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 87.5%, 890 basis points better than the prior-year quarter. Operating margin was 53.7%, 3,150 basis points better than the prior-year quarter. Net margin was 29.3%, 1,900 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $10.0 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $49.8 million. The average EPS estimate is $1.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 16 members out of 16 rating the stock outperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give Digimarc a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Digimarc is buy, with an average price target of $53.00.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.